Email this article to a friend

Sequestration creeps outside the Beltway

Many of the sequestration-imposed dollar cuts have been aimed at federal workers
so far. But that is changing...

About half of the non-postal workforce has suffered 10 and 20 percent
pay cuts and had bonuses denied. But now, there are signs that government
contractors and businesses that depend on the federal salary dollar are starting
to feel the squeeze, too. We examine how contractors are faring in Federal News
Radio's special series, Private Side of Sequestration.

Many feds are being affected in places you wouldn't readily suspect.

First, this fun quiz: When it comes to the impact of across-the-
board federal program cuts, reduced taxpayer services and furlough-triggered pay
cuts for feds, which city has been hardest hit? Would you guess:

Washington, D.C.

Huntsville, Ala.

Cincinnati, Ohio

San Antonio, Texas

Kansas City, Kan.

Ogden, Utah

Orlando, Fla.

Huh?

Orlando! Say what!

The correct answer to the above is all-of-the-above. But some
more so than others.

Metro Washington is home to the largest chunk of federal workers
in the country. Depending on who is doing the counting, about one in every 14
feds is based here.

The New York City metro area is second, but only just ahead of
Arlington, Va., which is a county inside the Beltway.

Because of our high concentration of federal workers — who
have yet to suffer layoffs — and a mostly thriving, high-tech, medical
community and professional community, the recession here isn't like the recession
in Atlanta. Or Dayton.

As the principle source of income, Uncle Sam's salary dollar here
is probably less important than it is in Huntsville, Ala., or Ogden, Utah.
Huntsville is home to a concentration of federal agencies. In Ogden, you probably
either work for the Air Force, the IRS or the Forest Service. Or you don't work.

When it comes to the federal dollar, few places seem less likely to
be dependent than Orlando. That's a fun place. A kid-oriented fun place. Las
Vegas with more clothes and a higher humidity. And yet...

Orlando hosts lots of conventions and conferences. It is handy for
east of the Mississippi, has good package deals — especially in the summer
— and is a place you can take the kids. So lots of groups — many of
them government or contractor-related — meet there. But this year, not so
much.

Attendance in Orlando (and probably other popular visitor spots) from
government groups is down big time. Part of it is political fallout from the bad
public relations the GSA suffered for some of its out-of-town, over-the-moon
events. As a result, many groups that would normally meet in D.C. or around the
country have canceled sessions or reduced attendance.

Last week, Federally Employed Women met in Orlando. But attendance was
way down, maybe half of what it normally is.

Today, the highly-regarded FDR (Federal Dispute Resolution)
conference begins its annual convention, also in Orlando. Despite its odd-
sounding name, FDR is considered the place for training and networking and
for people in the human resources, people-side of government business. While
people are still registering, it appeared as of late last week that attendance may
be 50 percent of normal. Multiply that by related events around the country, and
you can see the tourist-entertainment-hospitality industry is starting to feel the
pinch, too.

Although about 14 percent of the federal workforce lives and
works in the metro Washington area, the region is so relatively well-off, (can you
say Detroit?) even furloughs and program cuts can be absorbed. Up to a point.

On a per capita basis, almost any of the above — all
smaller towns with a larger, federal-military presence — are taking hits
that Washington, D.C., is better able to absorb. But Orlando?

DoE restructures management offices to
cut waste, improve security The Department of Energy is reshuffling its management deck in order to cut
costs and improve security. The restructuring, approved July 12 by Energy
Secretary Ernest Moniz, reallocates responsibilities of the three undersecretary
offices. DoE will expand the role of undersecretary of science to include the
energy technology portfolio, establishing the Office of the Undersecretary for
Science and Energy.